Mega exemption sub contractors
This query is : Resolved
07 December 2015
M/s T Ltd has been awarded a Dam Construction contract at North Bengal. The said company, hereinafter known as the contractor, awarded the said contract to my client, M/s A, hereinafter known as the Subcontractor.
As per the contract order, the boulders, gates, stoplog, hoists, cranes and rack & racking machine would be supplied by the contractor and the subcontractor shall erect and assemble them. Any other materials that will be required during the construction shall be brought and fitted by the csub contractor and the sub contractor shall fix tents for the employees and use diesal for producing electricity for the execution of the contract.
The Sub contractor used electrodes, oxygen pipes and other materials during the execution of the contract.
Now, the Service Tax officer (Superintendent) is of the view that the contract executed by the sub contractor was in the nature of labour contract and hence not eligible for exemption from service tax.
Please advice us
M/s T Ltd has been awarded a Dam Construction contract at North Bengal. The said company, hereinafter known as the contractor, awarded the said contract to my client, M/s A, hereinafter known as the Subcontractor.
As per the contract order, the boulders, gates, stoplog, hoists, cranes and rack & racking machine would be supplied by the contractor and the subcontractor shall erect and assemble them. Any other materials that will be required during the construction shall be brought and fitted by the csub contractor and the sub contractor shall fix tents for the employees and use diesal for producing electricity for the execution of the contract.
The Sub contractor used electrodes, oxygen pipes and other materials during the execution of the contract.
Now, the Service Tax officer (Superintendent) is of the view that the contract executed by the sub contractor was in the nature of labour contract and hence not eligible for exemption from service tax.
Please advice us
08 December 2015
As the sub contractor uses electrodes, oxygen pipes and other materials during the execution of the contract it is a works contract not labour contract, eligible for exemption from service tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Internship/Academic shown in Salary Pay Slip of a Doctor
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Liable to deduct tds and 44ADA
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
